Question

Which statement(s) most directly apply to capitalism?

I. There is heavy government regulation of industry.
II. Individuals can start some, but not all, kinds of enterprises.
III. The price and availability of goods is determined primarily by the market.
a.
I and II
b.
II only
c.
I and III
d.
III only


Please select the best answer from the choices provided

A
B
C
D

Answer 1

D

Explanation: III is a core feature of capitalism (prices and availability are set by supply and demand in the market). I is incorrect (heavy government regulation describes command or heavily regulated economies), and II is misleading—capitalism generally allows individuals to start businesses broadly, not only "some" types.